Case Study

Utilizing Predictive Modeling to Increase Customer Retention

Issue:

A Fortune 100 auto insurance company faced the critical business challenge of identifying and retaining customers most vulnerable to churn.

Approach:

The Blackstone Group developed and validated a customer retention model, by scoring the customer database and meaningfully segmenting to profile customers into two groups:

  • Loyal customers; and
  • Customers who were most vulnerable to attrition.

From this, marketing strategies to address cross sell initiatives for loyal customers and retention initiatives for the vulnerable customers were developed and implemented.

      Results:

      Through Blackstone’s innovative use of predictive modeling, the auto insurer increased its customer retention rate by 150 basis points.